IGO’s first half beat expectations in terms of operating income with earnings from the Nova project forming 70% of the total earnings. There will be no interim dividend while the broker assumes a final dividend of 6cps.
The addition of Greenbushes to the portfolio is a differentiator, highlights Credit Suisse, and provides investors exposure to the world’s premier global hard rock lithium asset and downstream hydroxide production.
While the broker views IGO as one of the leading battery materials investments but considers that post-rally, its value looks full.
Rating is downgraded to Neutral from Outperform with the target rising to $6.40 from $6.
Sector: Materials.
Target price is $6.40.Current Price is $6.71. Difference: ($0.31) – (brackets indicate current price is over target). If IGO meets the Credit Suisse target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
